Wall Street rallies on US-China trade deal hopes; Apple hits record high

Shares of Apple Inc hit a record high and were the biggest boost to the S&P 500 and Nasdaq, while the technology sector was headed for its best day in five weeks

Reuters  Last Updated at October 12, 2019 02:38 IST

Wall Street rose for the third straight session on Friday, as investors expected top-level trade talks between the United States and China to result in a partial trade deal and delay planned U.S. tariff increases.

Shares of Inc hit a record high and were the biggest boost to the S&P 500 and Nasdaq, while the technology sector was headed for its best day in five weeks.

President Donald Trump said the trade negotiations were going well, and he would meet Chinese Vice Premier Liu He later in the day. The top-level discussions enter their second day on Friday.

“The President seems to indicate that there is a possibility of an interim trade deal,” said Rick Meckler, a partner at Cherry Lane Investments in New Vernon, New Jersey.

“The thought is that there will be some conciliatory moves from both sides, as news earlier in the week had investors worried that these talks might be moving in the wrong direction.”

The S&P 500 and Dow Jones indexes looked set to break a three-week losing streak on optimism that the world’s top two economies could cool off their row before more U.S. tariffs kick in next week.

Investors also moved into cyclical sectors such as financials, ahead of the third-quarter earnings season set to begin with banks reporting next week.

The S&P 500 bank index jumped 3%, on track for its best day in a month, on expectations that strength in mortgage banking and cheap valuations could provide support to some of the biggest U.S.

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